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MINUTES OF THE 51st MEETING OF SOUTH EAST
ENGLAND DEVELOPMENT
AGENCY
HELD ON 22nd OCTOBER 2003 AT
ASHFORD INTERNATIONAL HOTEL
Present
James Brathwaite CBE (Chairman)
Professor Sir Clive Booth (Deputy Chairman) (items 1-4)
Elizabeth Brighouse
Barry Camfield
Poul Christensen
Robert Douglas
Cllr. Sarah Hohler
Janis Kong OBE
Mary McAnally
John Peel
In Attendance
Anthony Dunnett (SEEDA, Chief Executive)
Marianne Neville-Rolfe (Agency Secretary and Director, Strategy and Corporate
Services)
John Parsonage (SEEDA, Director, Learning and Skills)
Charlotte Dixon (SEEDA, Director, Economic Inclusion and Sustainability)
Paul Hudson (SEEDA, Director, Development and Infrastructure)
Pam Alexander Chief Executive designate
Item 1 Welcome and Apologies for absence
- Apologies were received from:-
Cllr. Ken Bodfish OBE (Deputy Chairman)
Cllr. Keith House
Terry Mills
Dr Peter Read CBE
Jeff Alexander (SEEDA, Director, Business and International)
Paul Martin (Regional Director, Government Office of the South East)
- The Chairman welcomed Pam Alexander to the meeting. Her appointment as
the next Chief Executive had been announced that morning.
- The Chairman asked for comments on the morning's Annual Open Meeting.
Members agreed that letting the question and answer session run on was well
received and useful. Some suggested that it is not clear what SEEDA wants to
achieve from the meeting; it could be better targeted at business and businesses
in the Oxford area should be specifically invited next year.
Action: Marianne Neville-Rolfe to review with the Chairman and Chief Executive
once the viewing figures from the web cast can be analysed
Item 2 Minutes of last meeting (16th September 2003)
Matters arising
- Poul Christensen requested that the item on market towns under item
10 be renamed as rural towns so that towns without markets would not feel
excluded
from the programme. Subject to that change, the minutes were agreed and
signed.
- Referring to item 4, the Chairman's report, Liz Brighouse reported
on a successful meeting in Brussels on prosperous regions in Europe, and suggested
that this be followed up in December when the Board meets in Brussels.
- Reporting on the action items, Marianne Neville-Rolfe said that the work
on the Index of Multiple Deprivation was not complete so firm conclusions on
the effect on funding cannot yet be reached. Early indications were that there
probably be little net effect, but that comments on the particular deprivation
issues of the South East were being submitted.
- There is ongoing discussion within all RDAs on advising their board members
on planning issues recognizing their new planning remit as a statutory consultee.
Until there is clear guidance on what are the strategic issues on which SEEDA
may be involved, it is better for all board members not to comment on planning
applications and avoid becoming involved in any way with projects subject to
planning review. Any statements made by statutory consultees have to be able
to be substantiated.
- The Enterprise Hubs appraisal is underway, but will not be reported before
January. Clive Booth reported on concerns on sustainability of the Oxford Hub.
It has always been made clear that funding for hubs was not indefinite, but
exit strategies are still being refined.
- The Chairman agreed to suggest suitable speakers on energy for a future
board meeting
Action: Marianne Neville-Rolfe to report back to the Board on IMD in December.
Paul Hudson to prepare planning guidance paper for December meeting
Item 3 Declarations of Interest
- John Peel declared an interest in the health care project under item
7 (3) and in the manufacturing paper, item 9
- Liz Brighouse declared an interest in item 5 in connection with Oxford
Castle site
Item 4 Chairman's Report
- The Chairman reported that his visit to global region partners had
been warmly received. One notable difference between them and the South
East was
the amount of regional and national investment in the other successful regions.
Rob Douglas agreed that there was great potential for business and academic
exchange, but warned of the difficulties of negotiating in China. The opportunities
and enthusiasm offered should be tempered with the realisation of which party
is intended to be the major beneficiary. Building relationships in the Far
East in general and China in particular takes a very high level of resource,
and high level nurturing.
- The Vice Chancellor of the University of Sydney will be coming to
the South East for a return visit. Korea is investing heavily ($1bn)
in the multi
media industry, aiming to become the second largest in world. There is an opportunity
for our sector group to link with companies seeking to establish a UK base.
- From the Chairman's meeting with Sir Stephen Brown, TPUK and British
Trade International are supportive of SEEDA's global regions involvement
and of the proposed International Institute of Innovation and Entrepreneurship
(IIIE). The Chairman had agreed to raise the 'passport' scheme
with Treasury to see if it could be used to help SMEs into the export market.
- The Chairman and the Leader of the Regional Assembly met Tony McNulty,
Minister of Transport, and the Highways Agency to discuss taking forward the
rejected proposals from the South Coast Multi Modal Study. The meeting was
positive, with all parties working towards finding solutions to the A27. It
will probably take a further 6 months for discussions between the Highways
Agency and the local authorities to reach the report stage.
- Rail problems were also discussed, with an in principle agreement
reached on improving the Hastings to Ashford link, but the implementation
details still
to be worked out. The Bedenham level crossing proposal in East Sussex is being
actively discussed.
- A useful start had been made to attendances at party conferences,
especially as the northern RDAs always hold fringe events. A full evaluation
is underway
and will include whether breakfast is a suitable time for a reception. Janis
Kong reported on discussion with a Senior Government Minister who is very supportive
and would come and speak if asked, although the informal 'drop in' format
had worked well.
- Following on from the dinner with county and unitary leaders and
chief executives, the Chairman proposed a 'South East seminar' to
be held late June 2004. The Prime Minister and Chancellor would be invited.
Attendees
would be Leaders, Chief Executives and senior officers from around the region
to discuss how the region works and could be made to work better. Anthony Dunnett
has discussed this with new regional CBI chairman. The aim for the event would
be to put SE in an English context, getting all parties to identify how growth
should be sustained and having SE ministers and MPs to champion the position
of the south east.
Action: Marianne Neville-Rolfe to prepare a proposal for the board
Item 5 Development and Infrastructure Division Report
5(1): Update on activities
- Paul Hudson reported on his division's activities across the wide
spectrum of its interventions. A copy of the slides from his presentation was
circulated to members. He emphasized that to a large extent, his division services
the needs of other divisions, for example by providing the physical locations
for hubs and gateways as at Fratergate and a center for vocational excellence
for construction skills at the former Johnson and Johnson site. A review of
the completed projects at the J&J and Southmoor sites is underway.
- Attracting the interest of high profile architects such as Foster Associates
to the design competition for Pelham Square in Hastings has significantly raised
the town's profile. The combination of several imaginative schemes should
completely revitalise the town centre. Hastings is a prime example of how regeneration
is far more than mere property acquisition and of how a comprehensive scheme
can deliver much better outcomes for all involved.
- The Sustainable Communities Plan provides significantly increased
funding although the challenge could be to spend it all in the allotted
time so that
we can demonstrate what we can achieve with additional resources. Paul Hudson
outlined where SEEDA's intervention could be most usefully applied in
each location. In Ashford for example, residents want better links between
the station and the town centre to make the town centre work better, with improved
facilities. SEEDA can acquire the key sites to achieve this.
- Within its Urban Renaissance remit, SEEDA receives £1/4 million per
annum from ODPM for a Centre of Excellence. Our center will be a 'basket' of
initiatives that together comprise a center of excellence that is in advance
of the offer in other regions. There will be a brand launch next year, bringing
together the regional design panel, the design champions' club, the sustainability
checklist and the architecture centers under the Centre of Excellence umbrella.
Policy guidance on this to other RDAs from ODPM is being assisted by a secondee
from SEEDA.
- The report on the SE regional housing strategy has been released:
there is more work to do on affordable housing before the available
money can be
drawn down. Involvement in housing is a new responsibility for an RDA.
SEEDA has assembled 6 sites for affordable housing and put them out
to tender under
its brownfield land assembly trust (BLAT) initiative. The receipts will
be recycled to buy more sites. The model looks like it works, and has
attracted
interest from English Partnerships to develop jointly along the coalfields
project funding model. SEEDA now has gap funding powers for housing, but
no additional funding.
- SEEDA is the lead partner in the EU for the Finesse project on freight
transportation, one of three European projects from which we have been
able to draw 10mn euros of additional funding.
- The development and infrastructure division now has a team dedicated
to providing a property resource to local authorities which lack the
in-house capability to project manage large schemes. Currently three
development
schemes are being managed by SEEDA on behalf of LAs.
- The East Kent Special Vehicle for utilities in East Kent is close
to letting its first contract. SEEDA is underwriting part of the
cost, but
this will be
recovered and can be recycled once the connections are made. If the
model is successful, it could be replicated regionally, or nationally
through
EP, and
would be the first such mechanism for upgrading infrastructure in
the UK.
- Members asked if the development of the GKN site on the Isle
of Wight might draw staff from existing companies, an issue raised
at
the open
meeting. The
Executive agreed that there were training issues that needed to
be addressed.
- Redevelopment of the Woolston shipyard in Southampton, currently
being master-planned by Richard Rogers' partnership, is now being championed
by the City Council. The site is adjacent to one of the 119 wards and should
act as the catalyst to turn this part of Southampton around. Other major development
sites are on target for completion over the next three years. Paul Hudson demonstrated
how long it takes to complete major projects by referring to the flagship Chatham
Maritime site. It is 20 years since the shipyard closed. The housing element
of the scheme is now 2/3 complete and still setting the standard for housing
design in North Kent. Work is starting at Rochester Riverside in partnership
with Medway Council.
- CTRL will have a major impact on East and North Kent. It
is essential to maintain the pressure for domestic usage of
the track.
- Members noted the progress made on the range of activities
undertaken by the Development and Infrastructure Division
Action: John Parsonage, Jeff Alexander and Paul Hudson to
review GKN site and business training needs.
5(2): Capital Rationing
- Paul Hudson presented his paper on capital rationing that had arisen
from a request from the Board to know how decisions relating to big projects
are
prioritized against available capital. Setting out the structure for decision
making will protect the Board against any future complaints as resources become
tighter. Although decisions on strategic acquisitions over time can be made,
it is impossible to predict the order in which they may become available. Once
a site is available, proposals are appraised and checked for budget accuracy.
- The key to success is cash flow management so that opportunities can
be taken when they arise. There is monthly monitoring of the business plan
and
regular cross team budget monitoring by directors. The cost of holding the
asset base has to be taken into account, and the cost of assets should stay
below £100m.
- The land bank is a valuable asset. A more sophisticated way to run the
RDA would be to capitalise on the asset by borrowing against it. This is being
pursued with Government.
- Priorities are determined by local partners. Projects are appraised against
outputs and regeneration benefit to the 119 wards. The timing of projects is
partly determined by their immediate urgency. The budgetary process is becoming
increasingly rigorous with more specific predictions of commitments over 12
months from all divisions. Although it will become harder to be opportunistic,
it is important to be able to retain a degree of flexibility.
- Members recommended an auditable system of ranking be prepared in advance
of budgetary pressures. This is likely to be based on the internal business
plan. The same scoring system would also apply to prioritizing the proposals
from the AIF partnerships.
Action: Paul Hudson, Marianne Neville-Rolfe and Charlotte Dixon to prepare
cross RDA process
Item 6 Government Office Report
- In the absence of the Regional Director due to a family bereavement, no
report was submitted.
Item 7 Chief Executive's Report
7(1): General Report
- Members noted the Chief Executive's general report. Anthony Dunnett
reported that the Dti has agreed to the delegation level for the board to be
increased to £10m. He recommended that the delegation limit of £3m
to the Executive remain unchanged. The increased delegations were a mark of
confidence by Dti in SEEDA's appraisal and monitoring systems: not all
RDAs had been granted the increase. This increase is a reflection of the 'excellent' rating.
7(2): International Institute of Innovation and Entrepreneurship (IIIE)
- The Chief Executive reported that he will be presenting a costed business
plan for the IIIE to the December Board meeting. He said that the concept
was gaining significantly increasing interest from global partners. There
is a recognised need to enable small companies with good intellectual property
rights to access other market places, but this has to be done co-operatively
on an international basis to get the necessary critical mass of expertise.
- There are 45,000 high-tech companies in the SE, most of which would
probably benefit from some short term training (a few hour modules) in Innovation
Entrepreneurship
and accessing international markets. The Institute would provide a centre of
excellence with revolving key players, increase the capacity to teach entrepreneurship.
To be successful, such an Institute needs to be independent of any specific
university to avoid sectoral interests. Members recognised that only SEEDA
could keep it impartial.
- Members questioned the lack of European linkages. Anthony Dunnett responded
that the initial plans had evolved quickly over the past 6 months with willing
partners from well established links around the globe. Other European partners
would be involved soon. Discussions were underway. The topic is currently of
great interest to the European Commission, and there is bound to be considerable
interest from successful European regions.
- Ashford was the suggested location not just because of its links with
Europe via the Channel Tunnel, but also because as a designated growth area,
it would be easier to attract funding. Support could also be forthcoming from
the French Government who are keen to develop entrepreneurship.
- Barry Camfield expressed reservations that this could be seen to be exclusively
about growth but without any reference to corporate social responsibility or
the social dialogue agenda for employees. Although others agreed with the points
he was making, it was agreed that not everything can be included initially
and it is better to start with addressing the immediate need and developing
later into other areas. We should also not do what others are already addressing
but build on their strengths. Involving the civil service is not about privatizing
it but encouraging a change of mind set within it. Liz Brighouse suggested
that the School of Social Entrepreneurs could be linked in, and that would
be a good model to learn from.
- The Institute could benefit the town of
Ashford, the region and the UK. BTI and SBS are both supportive and willing
to be involved. There is already
a demand from foreign businesses to participate by attending lectures either
physically or virtually. Multinational companies could be encouraged to finance
the Institute to show support for entrepreneurship. The proposal is unique
as it is looking at the globalisation of innovation and the internationalization
of IPR.
- Members accepted that this was a high risk venture that might fail, but
supported the proposal. They cautioned care with the language to avoid exclusivity,
and suggested time be spent on determining the best marketing name.
7(3): Project Report
- The Board reviewed, noted and approved various SEEDA programme
investments.
Item 8 Major Project update: Coalfields
- The Board noted the progress made with the Coalfields Programme, its
delivery of strategic outputs and its contribution to key objectives
in the Regional
Economic Strategy and Business Plan to promote business and economic growth
in Kent.
- The submission to the ODPM Select Committee on Coalfield Regeneration
was reported to the Board.
Item 9 Major Project update: Manufacturing
- This manufacturing progress report was submitted one year after the
manufacturing summit, in anticipation of a report being requested by
Dti. John Peel, who
had been involved in the MAS and lean manufacturing before joining the
SEEDA Board, suggested that the benefits listed in paragraph 8 of the
paper were
underestimates as once the initial changes are made, the benefits grow
year on year. 'Lean' has a multiplier effect through the supply chain.
Barry Camfield said the paper did not give a true picture of manufacturing
in the region, and needed contextualising in both regional and national terms.
He wanted to know how much impact the programmes were really having on manufacturing
or if they were marginal. Marianne Neville-Rolfe reported that a context analysis
was carried out before the plan was put to Dti last year, and this could be
recirculated if members wished, or published on the website.
- The Chairman reported that he believed there has been growth in the manufacturing
capability in the SE, and that the number of companies we were reaching would
suggest that our effect was more than marginal. The SE is likely to have the
highest number employed in manufacturing in the UK and a more contextualised
paper would give the region added ammunition in dealing with Government. James
Brathwaite to circulate company letter on strategies and reality of impact
of manufacturing policy.
Action: Marianne Neville-Rolfe to send manufacturing context analysis to Barry
Camfield.
James Brathwaite to circulate company report on strategies and reality of impact.
Items 10 &11 Operational Review and Mid Year Review
- These reports had sufficient overlap to allow joint consideration.
Marianne Neville-Rolfe reported that there were neither under- or over-shoots
needing
corrective action. 35% of the budget had been spent at the half year stage
with 48% already committed, leaving only 17% to be legally contracted.
A steady rate of spend had been achieved, demonstrating the success
of the
policy endorsed by the Board for allocating an over profiled budget at
the start of the year to encourage commitment.
- Accruals accounting limit the Agency's flexibility around year end.
This will have significant implications on next year's budget. Members
asked questions about availability of funding for future social regeneration
projects. Following satisfactory answers, both reports were noted.
- The Chairman has noted he wants to get more bottom line funding. The
Chief Executive has been addressing this with Treasury to see if the
Agency's
unique 'excellent' rating can be used to achieve greater flexibility.
DTI, HMT, GOSE and SEEDA are going to brainstorm how to access a £50m
overdraft type facility.
- A further area of discussion will be the possibility of transferring
capital to revenue. Whilst accepting it is unlikely the region will get
more from SR
2004, the SE should get a fairer share of the extra £200m allocation
which is presently going to RDAs (we are capped, indeed safety vetted and receive
no direct benefit).
Item 11 AOB
- It was agreed that Terry Mills join the Audit Committee. The additional
vacancy that will arise when Barry Camfield steps down in December should
be filled by one of the new members joining the Board.
Action: Rob Douglas to approach Rob Anderson to join Audit Committee
- John Peel asked that SEEDA meet its targets for payments of account.
Action: Marianne Neville-Rolfe to ensure prompt payment.
- Poul Christensen queried the rationale for measuring the success
of the SE Food Group Partnership by its members attendance at meetings
organised by
SEEDA. Marianne Neville-Rolfe explained that this was intended as a measure
of involvement of sectors and clusters businesses.
Action: Jeff Alexander to look again at measures
- The Chairman proposed a Board awayday be held on either the 14th
or 26th January 2004, culminating in a farewell dinner for retiring board
members
and the Chief Executive.
Action: Marianne Neville-Rolfe to circulate a briefing note. All members
to indicate their preferred date to Helen Hudson in the Secretariat.
Item 12 Date of Next Meeting
- The next meeting will be held at South East House in Brussels on
December 11th 2003, starting at 9am.
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